BEC Study Group Q4 2014 - Page 22

Viewing 15 replies - 316 through 330 (of 1,325 total)
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  • #625954
    YoungNC
    Member

    NPV is going to give a $$ value after applying the hurdle rate and PV. IRR is going to give you the %% at which the NPV = the cost of the project. The NPV issues is that you aren't sure what the exact rate of return, while IRR obviously is purely based on %.

    #625955
    Zackrampage
    Member

    Nobody taking BEC today? I got it on Friday 🙁 2nd try.

    FAR - 62 , End of aug 2015
    BEC - 67, 67
    AUD - TBD
    REG - TBD

    #625956
    Leena_1101
    Participant

    @Zackrampage How did it go?

    #625957
    Gabe
    Participant

    Thanks YoungNC!

    @Zack I don't think anyone is taking it today…but could be wrong.

    CPA, CFE
    CISA- Experience will be completed by August 2016

    #625958
    Zackrampage
    Member

    @Leena I am taking it Friday. It wasn't terrible the first time, I felt it could have gone either way. 3-4 more ques right would have been a pass. I studied a lot. So just took a few weeks to review and retake Fri. Trying to stay relaxed.

    FAR - 62 , End of aug 2015
    BEC - 67, 67
    AUD - TBD
    REG - TBD

    #625959
    Anonymous
    Inactive

    It's officially October!!!! 1 more mth to study for me!!!

    #625960
    Letsdothis
    Member

    This might be a silly question but what kind of calculator are we given to use for the exam? any specific functions?

    We all have the ability to be whomever we want to be in this life. It's just a matter of DETERMINATION, PERSISTENCE, PATIENCE and the WILL to follow through. Never give up!

    #625961
    Anonymous
    Inactive

    I have only done about 300 MCQ so far this time around. Really need to step it up….B2 is just soooo slow!!!

    #625962
    Gabe
    Participant

    @Lets just a normal calculator…add/subtract/divide/multiply. I can't remember if it has square root on it or not…but the numbers DO have commas, which is very helpful 🙂

    CPA, CFE
    CISA- Experience will be completed by August 2016

    #625963

    Need help with this question. I don't understand Ninja's solution

    Augusta, Inc., expects manufacturing and sales of 70,000 units of product Maggie, its only product, to occur evenly over a 10-week period. Augusta pays for materials in the week following use. The balance of accounts payable for materials at the beginning of the 10-week period is $40,000. There are no beginning inventories. The fol¬lowing information pertains to product Maggie for the 10-week period:

    Sales price $11 per unit

    Materials $3 per unit

    Manufacturing conversion costs—Fixed $210,000

    Variable $2 per unit

    Selling and administrative costs—Fixed $45,000

    Variable $1 per unit

    Actual results are as budgeted, except that 60,000 of the 70,000 units produced were sold. Using absorption costing, what is the difference between the reported income and the budgeted net income?

    A. $10,000

    B. $20,000

    C. $75,000

    D. $95,000

    The correct answer is B.

    #625964
    Anonymous
    Inactive

    just figured it out….

    #625965
    Anonymous
    Inactive

    Here it goes…

    When we sell all units;

    Sales – $770,000 (70,000*11)

    DM – (210,000) (70,000*3)

    FOH – (210,000)

    VOH – (140,000) (70,000*2)

    SGA F – (45,000)

    SGA V – (70,000) (70,000*1)

    NET INCOME – 95,000

    When we only sell 60,000 units;

    Sales – $660,000

    DM – (180,000) (60,000*3)

    FOH – (180,000) (60,000*3)

    VOH – (120,000) (60,000*2)

    SGA F – (45,000) – period cost – expensed immediately

    SGA V – (60,000) – period cost – we don't count 10k since variable.

    NET INCOME – 75,000

    #625966
    Anonymous
    Inactive

    For the DM and OH accounts, since we are using absorption method, the costs of the 10k units of ending inventory will be expensed when sold.

    #625967

    Thank you!

    #625968
    YoungNC
    Member

    The different derivative hedges confuse me. Does anyone have an easy way to remember them and can someone quickly explain to me when the best time to use each is?

    Thanks!

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